The state of Pennsylvania has seen a lot of development in its gambling field in the last several months and the most recent news is related to the state-based casino operator Penn National Gaming. The local developer has filed a suit challenging directly the planned expansion in the casino field in Pennsylvania. According to the stance of Penn, the new mini casinos which are expected to be built in the state should be subjected to a stricter regulation regarding their location as they have the potential to cause more harm than good to existing ones.
Penn National is overseeing the operation of the suburban gambling location Hollywood Casino and as it was stated in the lawsuit filed this week the new 10 casino venues which are expected to open doors throughout the state and especially in the region might cause considerable harm to its operation. As it could be recalled, for several months last year the authorities of the state of Pennsylvania have been looking for ways in which they could amass a much-needed amount of money. The needed $376 million in revenue could help with the future development of the sector through a marketing fund.
This led to the final decision which came back in October 2017 and saw the authorities of the state of Pennsylvania giving the green light to the new law which is expected to help in this situation. And even though this might be true and the results could potentially help boost the local industry, Penn National claims that it is going to inevitably harm the business of the casino operator. This is because the new mini gambling venues will have the right to attract the already established casino patrons base in the region and this is going to have a negative impact on the revenue of the already operating facilities.
Consequences of the New Law
The casino operator also stated that this law is violating the constitutional rights of Penn National and this questions the integrity of the equal protection policy of the authorities. The accusation comes on the grounds that with the help of this law the authorities are supporting unfair competition and benefiting a given entity. It could be recalled that there have been concerns expressed during the debating of the bill and they were warning that it brings unpredictable consequences in the future.
It also became known that another casino location, Sands Casino Resort Bethlehem has filed a separate lawsuit claiming similar concerns regarding the harm the new venues might cause to its business. The casino is located in the same are of Harrisburg which is why the concerns are relatively similar, stating that the anticipated gambling expansion in the region could result in poaching of customers by the new mini-casinos. According to the guidelines of the new law, the progressing casino developers in the state have the chance to bid a minimum of $7.5 million and file their application for a mini-casino license which could feature up to 750 slot machines.